August 29, 2001

CONTACT: Frank Proffitt, Hawkins County Bank Regional President
(423) 272-2300

FOR IMMEDIATE RELEASE

     GREENE COUNTY BANK PLANS TO PURCHASE SUNTRUST BRANCHES IN HAWKINS COUNTY


     (Greeneville, Tennessee) -- Hawkins County Bank, an office of Greene County
Bank, Greeneville,  Tennessee, will be used to facilitate a proposed purchase by
Greene County Bank of three  SunTrust Bank branches  located in Hawkins  County,
Tennessee.  SunTrust Bank is selling its main office on Main Street and the Park
View branch on Park Boulevard in  Rogersville  and the  Surgoinsville  branch on
Bellamy Avenue in  Surgoinsville.  The proposed  acquisitions are described in a
non-binding  letter of intent  between  Greene County Bank and SunTrust Bank and
are subject to further  negotiation and to prior approval of banking regulators.
The acquisitions will not be consummated  unless Greene County Bank and SunTrust
enter into a final agreement.

The  proposed  acquisition  would  triple  the  number of  Hawkins  County  Bank
locations.  The addition of the  Surgoinsville  branch will enable Greene County
Bank through its Hawkins  County Bank  offices to better serve its  customers in
east Hawkins County.

"More  than  anything,  this  is a  reflection  of our  Board  and  Management's
commitment  to the people of  Hawkins  County,"  Hawkins  County  Bank  Regional
President Frank Proffitt said. "We would expect this proposed  purchase not only
to allow us to expand our financial services and products,  it will make banking
easier and more convenient for our new and existing customers."

"Hawkins  County Bank is part of an excellent  financial  institution  and we're
confident  our  customers  will  continue to receive the best  possible  banking
services, " said SunTrust Regional President Odie Major

SunTrust Bank will continue to operate its branch in Allandale.

"Assuming a final agreement we hope to have  everything  completed by the end of
November," Proffitt said.

The Hawkins County Bank office was opened in Rogersville in January 2000.

Greene County Bank is a wholly owned  subsidiary  of Greene  County  Bancshares,
Inc.,  which is headquartered  in Greeneville,  Tennessee.  As of June 30, 2001,
Greene County  Bancshares,  Inc. had total assets of approximately $765 million.
Greene County Bank is the largest  community  bank in East  Tennessee and has 28
branches throughout East Tennessee, including Hawkins County Bank.

This news release contains  forward-looking  statements  regarding Greene County
Bancshares, Inc. All forward-looking statements involve risk and uncertainty and
actual results could differ  materially  from the  anticipated  results or other
expectations  expressed  in the  forward-looking  statements.  A  discussion  of
factors  that  could  cause  actual  results  to differ  materially  from  those
expressed  in the  forward-looking  statements  is  included  in  Greene  County
Bancshares' filings with the Securities and Exchange Commission.